Do supervisory inputs matter in a capital-intensive industry?
Author InfoMurugappa Krishnan (University of Minnesota and Visitor, WZB, Berlin) Ashok Srinivasan (Fuqua School of Business, Duke University, USA) Abstract We estimate a translog production function based on data from a Japanese automobile plant in the Midwest where output is determined by capital and different supervisory time inputs. We fit a model which allows for heteroskedastic errors, where this heteroskedasticity is a function of various variables affecting perceived target severity. We find that while, as expected, capital inputs are important, each supervisory time input is also significant in this capital-intensive industry. Linear homogeneity in these inputs is rejected. We find evidence of asymmetry in substitution among different components of supervisory time. This asymmetry has implications for the design and allocation of supervisory tasks. © 1997 John Wiley & Sons, Ltd. Download InfoTo our knowledge, this item is not available for download. To find whether it is availa
